Replies to post #112921 on Zeev's Turnips Patch-No Politics (ZEEV)

[a/operator]

MrMom - re: ryvnx

I have had very good luck with ryvnx and its long companion ryvyx. Just remember its double short the ndx 100. The truly magnificent way to play ryvnx is to allocate into it as the market goes up, if you are able to. I think your initial buy has to be $25,000. Let's say the Naz goes up here from 1600 to 1700. You might buy some ryvnx at 1600, some at 1625, 1650, 1675, etc. Don't just dump all your money in at one index level. True for all short plays, (or long plays) they must be allocated.

[DlphcOracl]

MrMom: With regard to RYVNX, if you buy if from a broker other than Rydex directly, the cutoff time is 5 or 10 minutes before the market closes. Check with Ameritrade on that.

It is bought and sold just as if it were a mutual fund and is not suitable for day trades or, in my opinion, swing trades of less than 5 days duration. It is an easy way to lose a lot of money quickly and should be used for holding over an intermediate term period (e.g., ideally, greater than 1 month). It is for making a big bet on the market --- that we are near a top, with very limited upside and significant downside (or vice versa).

There are no excessive trading rules ( or, there shouldn't be) -- if Ameritrade hassles you about that with Rydex or ProFunds, switch brokers or open an account with Rydex or ProFunds directly. The main problem is "slippage" --- you will only get the closing buy or sell prices.

Hope this helps.